The Irish Exporters Association( IEA), welcomed the Report by the Commission on Taxation, stating that by and large the Report is supportive of the export sector, and has included many of the IEA's recommendations to the Commission.

John Whelan, Chief Executive of the IEA stated at the release of the report today (7^th Sept).

"The Report presents a wide ranging menu of measures for Government to consider , some will undoubtedly improve our competitive position internationally, but others such as the Carbon tax proposals could damaged the export sectors drive to retain business in the current recession .Hence , it is essential that Carbon taxes are not only revenue neutral , but also are sectorally balanced , so that we do not put certain export sectors out of business.

We are particularly concerned about the impact on high energy user manufacturers and the transport sector."

However, he went on to say the IEA particularly welcomes:

>The re-affirmation of the need to retain the 12.5% Corporation Tax

>The intent to keep the overall income tax burden low to enhance the rewards of working and keeping Irish wage levels competitive on an international level.

> The recommendation to permit companies to offset their R&D tax credits against their employer PRSI cost , this will be particularly useful for Services companies who have not been able to avail of the R& D Tax Credits to any great extent to date.

>The removal of closed company surcharge on professional charges proposed , as it will help these companies re-invest their trading income, which will be essential to enabling these companies to growth their services export business.

>The overall foreign pooling system proposed for foreign withholding tax on royalty payments, will make Ireland more competitive in attracting FDI. The pooling proposal if implemented will help to offset some of the other rising cost of business issues for FDI in Ireland.

>The proposed tax incentive to attract special skilled persons to Ireland again will have the impact of helping FDI companies bring in the necessary key staff at the early stage of investment in Ireland.

END

For further information please contact:

John Whelan, Chief Executive

Irish Exporters Association

Mobile: 087 927 1243